A bottling plant fills 2,400 bottles every two hours. The lead time is 40 minutes and a container accommodates 120 bottles. The safety stock is 10 percent of expected demand. How many kanban cards are needed?

= 7.77

≅ 8 kanban cards

Explanation:

 K =

K = Number of kanban card sets

D = Average number of units demanded over some time period

L = Lead time to replenish an order

S = Safety stock expressed as a percentage of demand

C = Container size

where,

D = If the average number of units demanded is 2400 and the time period is 2 hours, then that's 1200 in an hour, 1200 in 60 minutes, 20 in one minute.  

L = 40

S = 0.1

C = 120

K = 20 * 40 (1 + 0.1) / 120

K = 7.77

approximately

≅ 8 kanban cards

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